Dealmaker: NorthMarq Capital Secures $64M for Multifamily, Industrial Assets

NorthMarq Capital, Minneapolis, secured $64.2 million to refinance two multifamily assets and an industrial property.

In Omaha, Neb., NorthMarq arranged $14.2 million to refinance the 114-unit Chateau at Hillsborough multifamily property using the Fannie Mae Near-Stabilization Program. Managing Director John Reed structured the 10-year fixed-rate loan with a 30-year amortization schedule.

“The Fannie Mae Near-Stabilization execution allowed us to put this loan under application while the property was still in lease-up at 80 percent occupancy, without a rental achievement hurdle to lock rate or close,” Reed said, noting the 75 percent loan-to-value loan came with two years of interest-only payments.

Also in Omaha, NorthMarq Senior Vice President Jason Kinnison arranged $32 million to refinance Broadmoor at Aksarben Village, a 258-unit multifamily property, through NorthMarq’s seller/servicer relationship with Freddie Mac.

NorthMarq also secured $18 million to refinance a 355,000-square-foot industrial property on South Alameda Street in Los Angeles.

NorthMarq Capital Executive Vice President Michael Elmore arranged the life insurance company financing. The 10-year loan came with a 30-year amortization schedule.

“This loan recapitalized a previous transaction from 2010,” Elmore said. “The new loan allowed one of the four buildings to be released without a loan pay down. The buildings are all leased to a long-term tenant but with less than three years remaining on the lease term.”

Elmore noted the leasing risk was mitigated without cash collateral. “The overall loan structured allowed the owner to have a flexible business plan,” he said.